The Real Deal New York

Durst Organization needs new tenants for 1 WTC

Durst needs to meet 150,000-square-foot threshold or he could lose his share in the project

July 29, 2014 09:00AM

  • Print
From left: Douglas Durst and 1 WTC

From left: Douglas Durst and 1 World Trade Center

The Durst Organization is facing pressure at One World Trade Center.

Douglas Durst, who invested $100 million for a 10 percent stake in the project, has to find new tenants for the tower, or he’s running the risk of getting booted, the New York Post reported. According to board minutes from an August 2010 Port Authority meeting, the authority can buy back its $100 million share in the project if Durst doesn’t reach a “minimum threshold for lease-up.”

The threshold is 150,000 square feet within the first year after the tower’s opening with tenants paying rent by the end of the year. Condé Nast is moving into the building in January. The roughly 1.5 million square feet that have been signed to the mass media company, but also to China Center and the federal GSA do not count toward this threshold.

The 3 million-square-foot tower is about 60 percent leased at the moment. Asking rents were reduced recently– the middle floors went down from $70s to $60s — due to weak demand. The recent office leases signed total about 50,000 square feet. [NYP] – Claire Moses

  • Proper

    so he was in at a $1BN valuation when the building cost $4BN to develop? thats one sweet deal. I bet a lot of other landlords would take over his $100MM stake now and recommit to deliver leases. SLG

  • Justin

    He needs to approach former tenants of the twins. Like Cantor Fitzgerald, Marsh & McLennan, Morgan Stanley, Sidley Austin etc. It would be monumental and great PR for them to return HOME. To their real home at the World Trade Centre in New York City.

MENU

Subscribe to our email newsletters

New York Real Estate News
South Florida Real Estate News